Two Texas Utilities To Build $1.9-Billion Water Pipeline

The two major water suppliers in the Dallas-Fort Worth region, Dallas Water Utilities and the Tarrant Regional Water District in Fort Worth, will collaborate to build a $1.9-billion, 179-mile pipeline from East Texas as part of a plan to combat drought, The Bond Buyer has reported.

Both water suppliers, with triple-A ratings, would share the cost of the East Texas pipeline by issuing tax-exempt bonds.

"Future debt associated with the expansion of the water supply could cause a slight increase in the rates paid by district customers," according to Standard & Poor's.

Construction of the East Texas pipeline could begin in 2014, with an expected completion date of 2018. The pipeline could deliver 197 million gal per day (mgd) and would increase Dallas' capacity by 150 mgd, the newspaper reported.

The Tarrant district's system, which includes four major reservoirs and transmission facilities, is authorized to supply 595 mgd to customers.

The Dallas system supplies water and wastewater services for the city’s population of approximately 1.3 million, and several nearby cities, as well as Dallas-Fort Worth Intl. Airport.